(10 years, 7 months ago)
Commons ChamberIndeed. That was the objective of the consultation. Let me briefly reveal the history, as we have been talking about it implicitly throughout these exchanges. We announced last January that it was time for the Government to step in and the consultation was launched along the lines envisaged by the Select Committee on a statutory code of practice and an independent adjudicator. That was the framework of the Government recommendation. We included an open question on the mandatory free-of-tie option with open rent review and we tried to underpin a specific intervention with a framework, a philosophy, a set of principles, the overarching fair-dealing provision and the core principle that a tied tenant should be no worse off than a free-of-tie tenant.
I thank the right hon. Gentleman for giving way, he is being very generous. Does he recognise that because of the relationship between the licensee and the pub companies, whatever the licensee does means in some circumstances that the pub company asks them for more money? If they put on food, for example, the pub company increases their rent. The relationship is fundamentally unequal and difficult.
The hon. Lady is stating in her own way what I have already said several times and what I think is the consensus. There is an imbalance in the relationship, which is not equal. The market does not deliver a fair outcome, which is why we are considering how we can change it.
We did not want to reopen the fundamental issue about the pub tie, but to decide how to address the unfairness of it, and the consultation revealed the depth of feeling on the subject, which all the interventions that we have had so far have reinforced. The responses came not just from the pubcos and the tenants, but from supply chain companies, consumer groups and trade bodies, all of which fed into the consultation, and they were so many and diverse that we published them just before Christmas so that hon. Members were aware of what was being said before we came to a conclusion on how to respond.
As I have said already, we want to respond as quickly as possible. We fully understand the problems, not just because distressing cases are continuing but because people in the industry want clarity, and it is perfectly reasonable for people to want regulatory certainty. We do not want to rush into a decision. We want to get this right, but we realise that there is some urgency because people need to make investment decisions. We are trying to get this absolutely right and we want the intervention that we make to be proportionate and properly targeted.
(10 years, 8 months ago)
Commons Chamber1. What comparative assessment he has made of trends in the annual rates of inflation and growth in average earnings since May 2010.
3. What assessment he has made of recent trends in the level of average earnings.
Real average weekly earnings have fallen since 2010, owing to the previous Government’s financial legacy left to us. However, last year real household disposable income grew at its fastest pace since 2009. In its latest forecast, the Office for Budget Responsibility expects the growth of real household disposable income to accelerate in every year of the forecast period, reaching 2.6% in 2018.
Will the Minister confirm that the UK has suffered the second biggest fall in wages of any G20 country since this Government took office? Is that not a damning indictment of this Chancellor’s record over three wasted years?
(10 years, 9 months ago)
Commons ChamberI have discussed RBS and what we can do to ensure that it supports the Scottish economy with my right hon. Friend on many occasions. The plan that the management has proposed, which we and the Governor of the Bank of England support—it is the first time since RBS collapsed in autumn 2008 that all those groups agree on a single strategy for the bank—will mean a strong, healthy future for RBS as a bank that supports the entire United Kingdom economy and, in particular, the Scottish economy. It is an important part of Scottish economic history and of Scotland’s economic future, too.
6. What recent assessment he has made of the rate of increase in (a) average earnings and (b) consumer price inflation.
Disposable income increased last year at the fastest pace since 2009. In March, the Office for Budget Responsibility forecast that real household disposable income growth would accelerate each year from 2014 to 2017, reaching 2.3% in 2017. The best way to raise living standards is to stick to the Government’s economic plan and deliver a recovery that works for all. Britain is back on the path to prosperity, the economy is growing, the deficit is falling and jobs are being created.
I do not understand how the Minister and the Chancellor can think that their economic policies are a success. After three wasted and damaging years of flatlining, working people are on average £1,500 a year worse off. Is it not clear that his plan has failed hard-working families?
(10 years, 9 months ago)
Commons ChamberI thank the Minister for giving way. Has he considered the fact that there are only a few Labour Members here because, to our relief, he has, in the end, listened to what we have been asking for and included a great deal of it in the Bill? I congratulate him on listening to us, and therefore on introducing the Bill.
That, too, is a theory, but I am not sure that it is necessarily persuasive. When we fought the previous general election, the Labour Government’s big policy for deficit reduction, among a pretty thin set of policies, was a big increase in national insurance contributions. We have already reversed the worst effects of that, and the Bill is a further measure that will help businesses up and down the country to create jobs.
The hon. Member for Bolton West is referring to one element of Labour’s five-point plan, which we do not hear much about any more, but there were serious problems with Labour’s proposal; this one is very different from that. It was a much more targeted scheme aimed at smaller employers taking on new employees, which raised all sorts of practical questions about how to define a new employee and how to prevent there being perverse incentives. I put it to the House that that scheme was neither workable nor likely to achieve its objectives. I suspect that we shall return to that issue.
(11 years, 2 months ago)
Commons ChamberOrder. There are still a lot of colleagues standing. May I please ask colleagues now to put a single-sentence question, without preamble—in other words, a genuine short question, which I know will be accommodated by the Chancellor with a short reply?
With 300,000 more children in absolute poverty, how many more will be in poverty by 2015?
Child poverty projections are made independently, but I say to the hon. Lady that we are doing everything we can to give children from poorer backgrounds the very best start in life, with measures such as the pupil premium.
(11 years, 4 months ago)
Commons ChamberThe coalition is, I am sure, united at the highest level, but that does not mean that Back Benchers do not sometimes disagree. My hon. Friend the Member for Bristol West (Stephen Williams) and I often discuss these matters, and we do not invariably agree on every aspect of them. The Lib Dems have their own particular policies, which they will no doubt put forward in an election campaign, but the coalition at large is committed to a single policy.
I want to come back to the amendment, which is about getting back to the 50p rate. We already have a situation in which the top 1% of taxpayers pay nearly 28% of the total income tax receipts—that is, £50 billion. If the rate of tax is put up to too high a level, people will change their behaviour to alter the amount of tax they pay. That is very straightforward, and they can do a number of things. Some people leave the country, so that their tax is paid overseas. Some work less hard, reducing their earnings to reduce their tax payments. Some use pension funds or legitimate forms of tax avoidance to minimise their income. That is all perfectly well known by those on the Opposition Front Bench, who are a fine and intelligent group of people, yet they try to make political points on the argument about fairness. Fairness seems to me to be about doing what is right.
It seems to me that the argument is not that we should reduce tax so that people will be kind enough to pay it; rather, we should be looking into closing down tax avoidance schemes. We should be presenting the moral case that everyone should be paying in according to their ability to pay, particularly in these difficult times.
However much we tackle tax avoidance, if we set tax rates at so high a level that people decide not to work, no legislation can force them to work to earn more. Unless we want to be like the Russia of the 1980s, we cannot pass a law to prevent people from leaving the country to work elsewhere if the taxes are too high here.
The hon. Lady almost makes my argument for me. In 1979, that hallowed year in which the great lady to whom she referred came to office, the highest rate of income tax was 98%, and the proportion of income tax revenues paid by the top 1% was about 10%. When the rate fell, the proportion paid by the top 1% went up, so more money came from the richest in society when rates were lower. Lower rates of taxation therefore resulted in the advantage of an increase in revenue for the Government and the ability to spend more on the services deemed necessary.
This argument was proved in 1979 when the rate went down from 98% to about 60% and again in 1988 when it went down from 60% to 40%. On both occasions, the amount of tax revenue increased because people were willing to work harder and people were attracted to work in this country—so the burden was, indeed, put on to the shoulders of those best able to bear it.
An argument is made about fairness. We say it is fairer to have a high rate of tax. We say that that is symbolically right—that we should have it so that people know they are doing something difficult and we are all in this together—but what is the symbolism of saying to people we will take less tax from them, and what is the symbolism of having lower revenue for the Government?
Her Majesty’s Revenue and Customs says that in the one year when the 50% tax rate applied, revenues went up—the figure it is currently giving is £1 billion. It is therefore difficult to argue that we should get rid of this tax rate, especially as we do not yet have all the evidence. We are only beginning to get the evidence now, because people are paying that rate now.
In fact, HMRC came out with figures showing the tax paid by the highest taxpayers declined; there was a loss in revenue of £6 billion, I think. I would prefer to take the actual figures that come in. I may be disloyal on this point—for which I hope those on the Treasury Bench will forgive me—but I think that forecasts from Her Majesty’s Treasury are absolutely useless. We do not want to go on economic forecasts; we want to follow facts, and the facts on the revenue that has historically come in make it clear that lower rates increase the tax take.
It is my understanding that, although tax takes went down in the first year when people could pre-pay and will definitely go down in this year when people will post-pay, they rose in the middle year, which is the one full year when the rate has applied, and for which people are now paying their taxes.
The problem with that argument is that we have facts that show that the amount of revenue has gone down. Over a three-year period it has gone down very substantially, because the rate was high. The hon. Lady’s comments also serve to illustrate the following point on my behalf, for which I am grateful: when tax rates are raised, people change their behaviour so that the tax they pay is reduced. That is where the Laffer curve comes in. Income is reduced when tax rates are too high.
(11 years, 4 months ago)
Commons ChamberFor the information of the Committee, I intend to call the Minister at 9.30 pm.
Today has graphically demonstrated to me one of the real differences between the haves and have-nots in our society. I will not go into the rights and wrongs, but today we spent millions on Baroness Thatcher’s funeral, yet Jade Lomas-Anderson, the 14-year-old child killed by dogs in my constituency, still has not had her funeral, because her parents and the community are still frantically trying to raise enough money to pay for it.
(11 years, 4 months ago)
Commons ChamberI welcome most measures in this Bill, particularly the rise in the personal tax threshold to £9,440 this year. That is already cutting in half the tax bill of people on the minimum wage, and next year the threshold will rise to £10,000 and 24 million people will receive a tax cut. That is the No. 1 Liberal Democrat priority, and I am delighted to see that it is being delivered by this Government.
We hear a lot about millionaire tax cuts, but I think that when the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown) decided to raise taxes in the last month of his failing Government, he knew that it would be the gift that kept on giving in terms of headlines. Unfortunately, however, it was not the gift that kept on giving to Her Majesty’s Revenue and Customs, as figures have shown. Millionaires will pay £381,000 more in income tax and national insurance in five years of this Government than they paid in the last five years of the previous Government.
What does the hon. Gentleman think about HMRC saying that the tax would actually have brought in £1 billion? The problem is that we had it only for the first year when people prepaid it, and this year when people will postpone it, but we did not bother to watch what happened in that middle year.
HMRC is well aware that people with those sorts of income levels have many choices about what they do with their money, and we have seen the effects of that. Once tax gets to 50%, people do other things, and that is what we have seen.
I wish to mention one or two relevant changes to pensions. I welcome the cut in allowances for pension savings. It is incredible that under the previous Government someone was allowed to save £255,000 a year for their pension and receive full tax relief worth £127,000. This Government have cut tax relief to £50,000, which will fall to £40,000, so the taxpayer cost of £127,000 will be £18,000 by next year—a huge change that will bring in, I believe, £4 billion. I also welcome the steps for 1992 Equitable Life annuitants. I have a number of constituents who felt very unfairly treated, and although the £5,000 they will receive does not go all the way to meeting their needs, it at least recognises the trauma they have experienced. I welcome the increase in the allowance for draw-down pensioners. That was also painful for some who took a big cut in their income when the Government Actuary changed the figures.
The Minister mentioned tax avoidance. I will not replay the debate in this Chamber from last January, but it had lots of content and I am pleased to see the Government acting on some of that. However, there is still a lot more to do on the internet and international businesses, and I look forward to seeing further measures. I also feel that the lines between avoidance and evasion are getting more blurred. Cases such as that of the bogus charity that was headlined in The Times only a couple of months ago are not just about avoidance and when HMRC should take people to court to get the tax—people need to end up in jail as a result of such schemes. It is high time that we were clear about schemes that are entirely fictitious, and things such as assets changing hands at different prices at the same time need to be viewed as criminal activity.
The Labour party has spoken a lot about the growth measures—or lack of them—in the Budget, and both I and the hon. Member for Cities of London and Westminster (Mark Field), who is no longer in his place, would like to see an export-boom recovery. One problem is that under the previous Government manufacturing went from 22% to 11% of our economy. That amazing fall means there are a lot fewer makers in the march—we all want to see the march of the makers. I welcome the steps the Government are taking to do something about that, including the regional growth fund, which has given out large amounts, mostly to manufacturing industry; the fact that the Government will act on the Heseltine review, which made many of the same points, such as the need to support regions such as mine in the Tees valley; and the tenfold increase in capital allowances from £25,000 to £250,000, which will encourage manufacturers to invest, which we badly need. The new employment allowance of £2,000 will help the smallest businesses to make a bit more money and encourage them to take on more people.
There are measures on infrastructure investment. The Budget plans contain a map of the country featuring the different infrastructure projects, so it is wrong to say that infrastructure investment is not happening. I welcome the Government’s targeting of strategic sectors that they have identified for success, such as automobiles and life sciences. A lot of work is being done on that, and along with the investment in supply chains, which seeks to get our supply chains back onshore after so many disappeared, it is already paying dividends—car parts manufacturers are coming back to the UK and so on. I believe that many of those steps are in the right direction.
On carbon taxes, all hon. Members understand the need to take care of climate change, but we must also ensure that our energy-intensive industries remain competitive. The Government are taking steps in that direction, but there is a lot more to do. We have increases in the climate change levy and the carbon price floor, both of which perhaps send the message to our heavier industry that it is not welcome here. We need to take steps to ensure that that is not the case.
The hon. Member for Cities of London and Westminster said that we do not want retrospective changes. One specific example is the climate change levy for combined heat and power organisations such as Sembcorp in my constituency, which invested millions in new equipment on the expectation that the regime would remain until 2027. The regime changed retrospectively and, all of a sudden, its investment case was gone. I have written to the Minister on that, and it needs considering specifically. It is no good expecting people to invest in green technology if we do not make the ground rules clear. If people start to believe that the ground rules will move, they will not invest.
I welcome the announcement in the Budget on the two areas that will benefit from carbon capture and storage. I would liked to have seen Teesside on the list, but I recognise that the decision was based on energy. I welcome the Government’s recent heat strategy, which specifically mentions the need for carbon capture and storage for industry. I hope that future Budgets cater for a project on Teesside to do exactly that. Teesside has an excellent business case for the Government if they take into account enhanced oil recovery and the revenue that will flow from petroleum revenue taxes as a result of the CCS projects. I hope the Treasury considers that carefully in future.
Generally, the Government are taking many steps towards encouraging green investment. I hope only that they can take the one extra step, which is to ensure that a lot of the investment that goes into new energy projects results in UK manufacturing and supply. Too much of the manufacturing has so far been offshore, including for a wind farm going up right outside my house in Redcar.
I have listened carefully to the speeches today, including those from Opposition Members. I understand some of their points but am confused by others. The hon. Member for Islwyn (Chris Evans), in one of his characteristically passionate speeches, mentioned VAT. I believe that this is the wrong time to introduce a measure that gives the most to those who spend the most—the richest get the most out of cuts in VAT. Most people at the lower end of the scale do not spend much on standard rate VAT items, so the measure he proposed would involve borrowing £12 billion to, for example, cut the price of a Ferrari by £4,000. This is the wrong time to do that. There are much better ways to spend £12 billion if that is what he wants to borrow.
Under the previous Government, three gaps widened: the gap between rich and poor, the gap between north and south, and the gap between the north and the south of the region where I live. That is a shameful record. I and the Liberal Democrats want a stronger economy and a fairer society, and I support the Budget.
Much as I enjoy going to Salford and the hon. Lady’s constituency, some honesty is required about how growth should be funded in the north-west. I am sure Mr Deputy Speaker has a view on that too, but he cannot express it in the Chamber. Under the previous Government, in the 10-year period to 2010, 100,000 jobs were created in the public sector in the north-west. During the same period, there was a net reduction of 25,000 jobs in the private sector. That is completely unsustainable. What we are trying to do in the north-west and throughout the whole economy is to have a more sustainable approach to job creation, which has led to the creation of more than 1 million jobs in the private sector. That is a far better record than anything from Labour when it was in power.
No, I have given way enough. We have all enjoyed the debate, but I shall now finish my speech.
In Macclesfield, we have one of the highest rates of self-employment in the UK, and among women Macclesfield has the highest rate of self-employment in the north-west. This year, the Budget was above all for small businesses and entrepreneurs like them. The Bill is the first step to realising the series of measures that will be delivered by the Government, such as the widely welcomed—at least on the Government Benches—employment allowance.
Not just small businesses welcome the return to a solidly pro-enterprise, pro-competition, lower tax environment. The Institute of Directors and the CBI both welcomed the clear progress in the Chancellor’s continual, and continuing, efforts to lower corporation tax. Clause 4 of the Bill provides for a corporation tax rate of 21% in financial year 2014, which is the lowest in the G7. Perhaps it is part of Lady Thatcher’s legacy that these days clause 4 is something to be celebrated as useful to the economy and progressive for growth.
The Chancellor has gone one better. Under clause 6, we will see Britain’s main rate of corporation tax reduced to just 20% in financial year 2015, the lowest in the G20. This is a clear, determined agenda to incentivise business activity for jobs and growth. It is precisely that clarity and determination that gives businesses certainty and confidence that enterprise is worth conducting in the UK, and that, as the Chancellor said, Britain is once again open for business.
It is a mark of how vastly over-complicated our tax system has been allowed to become that there are far too many opportunities to avoid and even evade taxation, and that very complexity has made a general anti-abuse rule inevitable. Of course, the Government are well aware that they must take great care that such a rule does not undermine the certainty and confidence in the tax system that we need. It would be sad if the GAAR became an excuse for HMRC to become sloppy when drawing up future tax rules in the knowledge that, if it did not get the desired results, it could always apply the rule. I am sure that the Treasury is determined to avoid such a situation.
I am pleased by the Government’s commitment to simplifying the tax system at the same time that the anti-abuse rule is being planned. Fighting complexity with complexity is not a long-term solution, so I look forward to progress on simplification. It is encouraging, and to the Chancellor’s credit, that in just three years the Government have taken the UK from near the bottom of the KPMG league table of competitive tax regimes to the top. That is progress, and I applaud it. Ministers should also be praised for not only explicitly recognising that there is yet more to be done, but setting a path for getting that done, not least by increasing the personal allowance to £9,440 this tax year, with the clear target of hitting £10,000 next year.
The Bill includes a significant commitment under schedule 14 to research and development credits, even for those companies with no corporation tax liability. The Chancellor’s decision to increase to 10% the rate of credit for above-the-line R and D, as well as the new £700 million annual patent box, will help to tackle under-investment in knowledge-based industries. That is important for the life sciences sector, which is critical to Macclesfield’s local economy and vital for our national competitiveness. Those measures are in addition to the tenfold two-year increase in the annual investment allowance for qualifying investments in plant and machinery from £25,000 to £250,000, which will boost much needed business capital investment.
The global race is not a sprint, but a marathon, and the Government are wise to recognise that it will be easier for businesses to run without hurdles and barriers in their way. To be blunt, if we want businesses to thrive, we need to tax them less and minimise the bureaucratic burden. The result of that approach is real sustainable growth and new employment opportunities. This is not about Thatcherite dogma; it is actually happening and it is delivering positive results, such as by enabling private sector employment growth of more than 1 million jobs since 2010. That is a great achievement for the Government—
It has felt like a very long four weeks since the Chancellor delivered the Budget, not least because of the terrible tragedy of the death of Jade Lomas-Anderson by a dog attack in my constituency, so when I came to write my speech today, I had to wrack my brains to remember what the Budget was all about. My overwhelming memory is of the Chancellor sitting on the Front Bench looking like a little boy lost, with no idea what to do about the flatlining economy, no idea what to do to stop a triple-dip recession, what to do about the loss of our triple A status, or what to do about the level of borrowing, and no idea how to balance the books. So he delivered a Budget that did none of those things, sitting on his hands, hoping that things will just happen.
Of course, things are just happening. Unemployment in my constituency, Bolton West, is up. One in 10 people in Greater Manchester skip meals so that other family members can eat. Nationally, homelessness and rough sleeping are up by a third. Shelter says that every 15 minutes another family is made homeless. The economy may be flatlining, but people’s income and spending are not. The OBR has said that in 2015 people will be worse off than they were in 2010. Wages are £1,200 lower than in May 2010. This year a family with two children and one earner earning £20,000 a year will be at least £381 worse off, and next year will be £600 worse off. Inflation, of course, is still running at 2.8%. Behind those figures are real people having a desperately hard time—people who are losing their homes, having to choose between heating and eating and relying on food banks to feed themselves and their children.
Tinkering at the edges will not solve the problem, and neither will blaming the poor for the situation they find themselves in. According to the Joseph Rowntree Foundation, 6.1 million people living in poverty are in working households, 6.4 million people lack the paid work they want and 1.4 million part-time workers want full-time work, the highest figure in 20 years, and 100,000 of the so-called new jobs pay no wages whatsoever. The churn of people in poverty or out of work is substantial. While 18% of people are on a low income at any one time, 33%—one in three of us—experience at least one period on a low income in a four-year period, and 11% of people are on a low income for more than half of those four years.
In 2012, 1.6 million people were claiming jobseeker’s allowance at any one time and 4.8 million had claimed it at least once in the previous two years. Those figures show that the Government’s desperate efforts to categorise people as skivers or strivers are a travesty of the truth. Some 2.5 million people, including 1 million young people, are not shirkers or skivers; they are people who need the Government to take action to create jobs. But there was no mention in the Chancellor’s Budget speech of what he would do and there has been no action; he simply hopes that something will happen.
What do we get from the Government parties? We get a tax cut for millionaires, paid for by the poor. What excuse have they given for cutting tax for millionaires? They say that the millionaires were not paying it. If only we could all get a tax cut just because we did not want to pay tax. The Government failed to tell people that they do not actually know how much money the 50% tax rate would raise, because in the first year people brought forward their income and this year people will delay it, but HMRC has said that it could raise £1 billion. If people are avoiding paying tax, surely we need to shut down the avoidance schemes, not cut the tax rate in the hope that they will stop using the schemes now that they have found them. It is a shame that the Government have not shown the same concern for people earning £41,000, who, without any pay rise, will now find themselves in the 40% tax bracket. Hundreds of thousands of hard-pressed families will now be paying more tax, without a thought from the Government.
There were one or two promises of jam tomorrow, such as help with child care in two years’ time, a single-tier pension in 2016 and capped care costs in 2016. I was interested to read Age UK’s briefing after the Budget. It welcomed the earlier implementation of the care costs cap and the higher upper means-tested threshold from April 2016, but it said that that would do nothing to help the 800,000 older people who need help with everyday tasks but receive no formal state support. Since the Government came to power, £700 million in real terms has been cut from social care funding.
Age UK also stated:
“The Chancellor may have confused”—
people—
“in his speech by referring to raising ‘the threshold of the means test on residential care from just over £23,000 to £118,000’. He was in fact referring to the upper means test threshold and older people will have to make contributions based on a sliding scale towards the cost of their social care if they have assets between the two amounts.”
It went on to say that the Budget offered no proposals to improve pensions for current pensioners or to reduce pensioner poverty, which currently stands at 1.7 million people. It was also disappointed that the Government are not doing nearly enough to help tens of thousands of older people whose income, health and well-being are being affected by the cold weather.
My hon. Friend is making some great points about social care. Before she moves on, would she like to comment on the fact that, according to Carers UK, 1 million people in this country have given up work or cut the hours they work because of their caring responsibilities, which can have a real impact on the economy? She has laid out that social care has been cut and that that means a real struggle for many older people, with 800,000 people not even having enough care, but it is also a real hit for the economy. Some carers might still be struggling to keep employed, but does she agree that, as services disappear, life is getting much harder for them, too.
I absolutely agree. On Saturday, I met a couple; the husband was the carer, looking after his wife. They, of course, are about to be hit by the bedroom tax as well. He said to me on the street, “I’d love to be working. I gave up my job to look after my wife.” If he had not done that, the cost to the economy of residential care would have been far higher than the benefits that that couple are getting. We have to do much more for carers rather than keeping on punishing them as the Government seem to.
I go back to Age UK’s response to the Budget. It had much more to say, but on the question of whether the Chancellor had delivered for older people, its answer seemed to be a resounding no.
The Government did reduce tax on beer by 1p, which, of course, is welcome for the pub industry, although it probably would have preferred action on the tie, which the Government appear to have shelved. The Government’s increase in VAT actually put 5p on a pint, and I hope it will take a long time for beer drinkers to sup the 300-odd pints before they get their free one.
It is also good that the Government cancelled the planned rise in fuel duty, but again the VAT increase wiped out any benefit that that may bring. I get annoyed when Government Members talk about how much they have “saved” the motorist, given that fuel has gone up by at least 10% on their watch. They also ignore the truth that the previous Labour Government cancelled or postponed planned fuel duty rises on 13 occasions, depending on the cost of fuel at the time. They also cancelled any rises at the height of the global financial crash—note that it was a “global” financial crash, not one made in Downing street where recessions now appear to be made.
However, tinkering at the edges will not give my constituents a job or increase their incomes. The Government made great claims about their proposals to help people buy a home and the Prime Minister claimed last year that their NewBuy scheme would assist 100,000 people to buy their own homes. What happened? Instead of 100,000 people, just 1,500 people benefited.
What about this year’s proposals? Instead of welcoming them, experts believe that they will simply lead to house price inflation. The Government cannot say whether people will be able to use the scheme to buy a second home. Someone in social housing with a so-called spare room will pay the bedroom tax, but the state will help someone who wants a spare house to buy one—not a cheap one either, but one costing up to £600,000. I do not see too many people on the minimum wage being able to service that sort of loan, even with the paltry increase announced today.
Why do the Government not get on and build homes? House building would do more for the economy than any of the gimmicks that they announced in their so-called Budget. Even their grandly announced increase in infrastructure spending of £2.5 billion does nothing to restore the cut of £7.7 billion to infrastructure spending that they have made over the past three years. Let us hope that they make progress this time by building something rather than making announcements that never seem to come to fruition.
The people of Bolton West are struggling. Many are more than struggling; they are finding it hard to survive day to day. The Government blame them and are hellbent on making the situation worse. They say that they have to cut the welfare budget but neglect to say that the majority of that budget is made up of pensions and in-work benefits. That does not fit the picture that they try to portray of the skivers who are ruining the economy. They forget to say that jobseeker’s allowance accounts for less than 5% of the budget and to tell us that cutting benefit not only forces people to food banks but harms the economy. They forget to tell us that the private rented sector is far more costly than social housing. They will do nothing to introduce fair rents and nothing to curb the cost of private rented accommodation—they simply cap benefits in the hope that that might just bring down those rents.
I am no economist, but even I know that if we cut jobs and benefits, we get into a downward spiral of more business failure, more people out of work and less money in the economy—on and on downwards. The only way to reverse that spiral is to invest in jobs and pay a living wage, to build houses for people to live in, and to take action to rebuild our economy. Instead, what do we get? A double-dip—thank heavens for the Olympics, because otherwise it would have been a triple-dip—recession, a doubling of debt, and a deficit that is not reducing. Instead of blaming the poor and giving a tax cut to millionaires, this Government—instead of sitting on their hands—should take action and not give us the non-Budget that they have given us this time.
(11 years, 5 months ago)
Commons ChamberI understand that some of those details were placed in the Library yesterday, and the hon. Gentleman is free to consult them. I hope he is not trying to deny that the phenomenon is taking place.
It is not clear how many unpaid, workfare jobs are counted among the jobs created. Clearly, they are not jobs created if people are working for nothing. How many of the jobs are like that?
These are proper jobs, as defined by the Office for National Statistics. I honestly do not know why Opposition Members are trying to deny a genuine piece of good news that affects their constituents.
(11 years, 6 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
We would have the same outcome as happened to the kamikaze pilots.
The Chancellor says that he will not run away from dealing with the country’s debts. When will he accept that the debts have actually run away with him, and that he has got no answers? When will he resign?
We are confronting the problems that the hon. Lady’s party left this country. If she is seriously trying to blame us for the fact that there was an 11.5% budget deficit, or for a financial crisis that was brewing while the shadow Chancellor was regulating the City, she needs to read her history books.